Marketers under different umbrellas of Petroleum products markets yesterday, cried out over the Dangote Petroleum Refinery’s decision to introduce sale of petroleum products in dollars.
Speaking on Wednesday, the Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi predicted that the marketers will have issues sourcing the dollars.
The IPMAN boss urged the management of Dangote Refinery to exempt the independent marketers from the payment of dollars for petrol because their customers buy the products in Naira, which is Nigeria’s official and domestic currency.
Similarly, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) National Public Relations Officer, Chief Chinedu Ukadike, predicted that the refinery’s sale strategy will culminate in the increase in pump prices.
Meanwhile, the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) President, Dr. Billy Harry described buying from the Dangote’s Refinery as importation of products.
Dr. Muda Yusuf, an economist, said more than 70 per cent of the refinery’s crude oil feedstock is imported, and purchased in US dollars
According to him, the refinery’s decision reflects commercial realities, not market failure and that any refinery whose principal input is purchased in foreign currency, will naturally seek to align its revenue with its cost structure.